Donations of Alcoholic Beverages by Retail Licensees

California state liquor law generally prohibits a retail licensee from donating alcoholic beverages.

But there are a few exceptions.

The exceptions involve donating to certain organizations holding a temporary license. Those organizations a retailer may donate alcoholic beverages to are:

1. A member-supported television station, which is also a non-profit charitable corporation, holding a temporary off-sale beer and wine license OR a non-profit charitable corporationthat receives and administers donations for public television holding a temporary package off-sale beer and wine license.

In either case, the temporary license only entitles the temporary licensee to sell the donated beer and wine at auction. (Section 24045.2 Business & Professions Code)

2. A women’s educational and charitable organization, which holds a temporary off-sale beer and wine license, “that is a part of a national organization having at least 10 chapters in California at least one of which has been incorporated since 1928, whose purpose is to foster interest among its members in the social, economic and civic conditions of their community and to give effective volunteer service.”

In addition, the temporary license only entitles the women’s organization to sell the donated beer and wine at auction for charitable purposes. The law further states, “None of the funds realized from this auction shall be used for administrative expenses of the auction and all funds shall be placed in trust for a charitable purpose.” (Section 24045.3 Business & Professions Code)

3. Certain non-profit corporations who have a special temporary on-sale or off-sale wine license. The temporary licensee may only sell the donated wine to a consumer and to any person holding a license authorizing the sale of wine.

This license is good for up to 15 days. If the license is issued for a period more than two days, then it can only be used “solely for retail sales in conjunction with an identifiable fundraising event sponsored or conducted by the licensee and all bottles of wine sold under this license shall bear a label prominently identifying the event.”

The ABC may only issue three of these special licenses to any corporation in a calendar year. (Section 24045.6 Business & Professions Code)

4. A member-supported television or broadcasting station who has a temporary on-sale beer and wine license. The retail licensee may alsoserve that beer or wine he/she donated at any event so licensed.

The ABC may only issue one such temporary license (valid for 30 days) to the television or broadcasting station per calendar year. (Section 24045.9 Business & Professions Code)

In summary, there aren’t many situations where a retail licensee can donate alcohol. And although the laws cited above permit a retail licensee to donate alcohol to the above organizations, the laws specifically say the donation cannot be made in connection with a sale of an alcoholic beverage.

Comments

Hello B Fresh,
I don’t know what LAPD’s approval criteria is. However, in general a law enforcement agency might be concerned with whether an event is held in the public right of way (streets, sidewalks, and public parking lots), whether the venue has accessibility to disabled persons, restrooms, sanitation, and the type of entertainment proposed and whether it might present a disturbance due to the type of music and/or the amplification. I would contact LAPD directly and ask. Thanks for your question. Lauren

When I called the ABC about the temporary beer and wine permit for a non-profit organization, they informed me that all they require verification of is non-profit status but that they send the application to the LAPD for approval. What does the LAPD look for when approving the license? If the event is at a venue that does not have an occupancy permit does that mean the LAPD will not approve the temporary license?

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Lauren C. Tyson is a professional liquor license consultant with 29 years of experience at the California Alcoholic Beverage Control as an investigator, supervising investigator, and district administrator. She is a recognized expert in liquor licensing, liquor law enforcement and responsible alcohol service. Read More…